it's coming

The US has been bankrupt for a few years now, although the general market has not recognised it. Spain, Greece, Portugal, Italy, Ireland have been bankrupt for the few years leading up to their current crisis. The general market was late to recognise it too. These nations are as indebted now (in fact, more) as they were a few years ago. But they were able to buy some time due to the low interest rates in the past. Once rates start to rise, the party is really over. The same calamity will befall the US too.

I doubt that the US can postpone the pain for much longer. The budget numbers are just too horrendous.  Although I don't like to make predictions with regards to timings, if I have to,  we should see a huge crisis hit the US in the next few years. Some other things might happen which will delay the day of reckoning (eg. the world turning its attention to Japanese debt). I think things will ultimately become really bad, and here, I attempt to list down some of the things that will happen in the US:

• A currency crisis
• A government debt crisis
• Rising interest rates
• Fed and government will do "whatever it takes" to support the dollar
• Fed or govt announcing Operation "Who's your Daddy" to support the economy
• A panel of seasoned 'economists' are formed to 'study' the crisis
• Co-ordinated effort by the Fed and financial institutions to purchase US bonds
• Banks lose big on government bonds
• Major bank bankruptcies
• Bailed out financial and auto companies in 2007/2008 fail again
• More money-printing
• More taxes
• More bailouts
• Student loan bubble burst
• Problems in the major and old colleges
• Bankrupt states, municipalities, cities
• Big rise in food and energy prices
• Government imposing price controls
• Price controls result in shortages of goods
• Riots in the streets
• More regulations and laws passed by the government
• More civil liberty lost as the government passes more laws in the name of tackling the crisis
• Gold, silver, platinum, oil, commodities prices soaring
• Wild swings in precious metal prices as speculators get on board
• Dealerships announcing a shortage of gold/silver bullions
• Even more people on food stamps and unemployment benefits
• More immigrations out of the US
• More people renouncing their US citizenship
• Politicians blaming the US crisis on the Chinese "currency manipulation" and the Eurozone crisis
• More capital controls
• More protectionist trade policies
• Possible ban on short-selling as traders get blamed
• Politicians trying to assure the market that things are under control
• World leaders announcing a 'concerted effort' to tackle the crisis
• China and Russia, and more countries hoarding more gold
• US hostilities with Iran deteriorate
• More countries trading using their own currencies, bypassing the USD
• Stock market may go up, down or sideways in terms of USD - but it will plunge in terms of gold/silver
• Stock exchanges closed to cool the market down
• More calls to use the SDR

And maybe further down the road,

• A ban on gold exports
• Issuance of a new US dollar